Travel during the off-season

If the place you are planning a vacation to is a popular destination, try your best to not visit during peak tourist season. This doesn’t mean visiting the beach in the dead of winter, but maybe visiting in the early summer or after school starts back to save money. If you are able to be flexible when you go on vacation, you can save so much money. It is likely that in the off-season travel will be cheaper, accommodations will be cheaper, and even food and entertainment will probably be a little cheaper. Everything will probably be less busy, too, which means it will be easier to find a place to stay, easier to make restaurant reservations, and more.

Buy flights as cheap as possible

Websites like Google Flights allow you to not only compare flight prices between airlines, but see whether prices are currently high or low historically. Flights can be one of the most expensive parts of a trip, especially if you are traveling internationally, so keep an eye on flights for the dates you are interested in and wait until you are getting a great price to book seats. If you are flexible with departure or return dates, you can potentially save even more money on flights. The more sacrifices you can make, the cheaper your airplane tickets will be.

Book accommodations in advance and be flexible

Hotel or other lodging accommodations are another very expensive, if not the most expensive, part of your trip. If you are planning a vacation you actually want to enjoy, you probably don’t want to save as much money as possible on accommodations. But that doesn’t mean you can’t get a great deal while still staying in an awesome place. If you are staying in a really popular destination, see if there are accommodations a little bit further away that are significantly cheaper. For example, if you are planning a trip to watch your favorite college football team play, staying 30 minutes outside of the city could be significantly cheaper. There are many different websites you can use to compare hotel prices, but it is always worth calling the hotel directly to see if they can offer a better rate.

If you use travel credit cards, you may be able to use rewards points to pay for all or some of your stay. For our honeymoon, my wife and I paid for our entire stay at an all-inclusive resort with credit card rewards. Renting an entire house is nice, but I’ve found that hotels are almost always cheaper (and nicer) after accounting for all of the fees associated with booking on services like Airbnb. Plus, at a hotel they make your bed for you and clean up after you, which makes me really feel like I’m on vacation.

Ask locals for travel advice

You may not know anyone that lives in your travel destination, but with the power of the internet it is possible to see where locals recommend dining, visiting, shopping, and for entertainment. Not only are the spots locals recommend probably much better than tourist traps, you’ll likely save money by living how the locals live. I enjoy some very “touristy” attractions, but the best places we have gone while on vacation have all been local spots not frequented by tourists.

What you do while on vacation is another very big expense. Prioritize your money on what you enjoy the most. I love good food, so for me dining out is always a priority on vacation, but that isn’t true for everyone. Maybe you really want to prioritize shopping or entertainment instead. If you can identify areas that aren’t priorities, cutting back on spending there can be very beneficial without taking away a significant amount of enjoyment from your daily life.

You don’t need to break the bank to have a really enjoyable and memorable vacation. More importantly, you don’t need to be miserable to save a lot of money on travel. If you can plan your trips in advance, book flights at the best time, shop around for nice (and reasonable accommodations), and shop, dine, and go out where the locals do, it is easy to have a great vacation while sticking to a budget.

1. Healthcare

The average American age 65 and older incurs $11,316 worth of medical expenses every single year. Many, or hopefully most, costs will be covered by Medicare or a Medicare Advantage Plan (or private insurance, if you retired before reaching Medicare eligibility). Medicare doesn’t cover everything, including some big expenses like vision, dental, and hearing, and a Medicare Advantage Plan won’t cover everything, either. One reason why medical expenses are getting higher in retirement is because we are living longer and longer. Most of us can plan on being retired for decades, which is great! However, this means you will likely need to plan for more medical expenses in retirement than previous generations.

Those retiring before Medicare eligibility will need to plan for spending even more on healthcare. Health insurance outside of an employer can be very expensive, and going without health insurance could be even more expensive. Planning to pay for healthcare on your own, without help from your employer or Medicare, can be very scary. At the end of the day, though, it is just an expense that can be planned for like any other kind of expense.

Once you reach your 50s, it would be wise to start planning for future long-term care you might need, and consider whether or not you have a need for long-term care insurance. About 70% of us will require long-term care services at some point, and the average stay in an assisted living facility is a little over two years. It is important to plan for these expenses before you need the money so your loved ones don’t end up scrambling to figure out how to pay for the care you need.

2. Travel

Nobody enjoys planning for what could be a massive amount of medical expenses in retirement and end-of-life care, but travel planning can be much more fun! With children now grown and out of the house and no more 9 to 5, retirement is when you can finally travel where you want, how you want, and when you want. That is, if you planned for those expenses before retirement.

Almost all Baby Boomers, 99%, said in a study that they planned to travel for leisure each year, taking about four to five trips. 47% plan to travel internationally, with the average Baby Boomer spending about $6,400 per year on travel. It is reasonable to expect travel expenses to go up in retirement, and they should; travel can be a great way to experience new cultures, places, and people that you may not have had an opportunity to while working.

3. Charitable contributions

Older Americans are the most generous group in the country. Those born before 1964 account for almost 70% of all charitable giving in the U.S., and retirees are much more likely to define success by how generous they are rather than by how much wealth they accumulated. Planning for those charitable contributions before retirement can help ensure you are on-track to accomplish your charitable goals, whatever they may be.

Not only can giving to charity help make the world a better place, there are also strategies you can employ to maximize the benefits the charity and you receive. Charitable giving accounts allow you to donate appreciated holdings directly to your preferred organization, which can reduce your tax burden (don’t worry, the tax burden doesn’t shift to the charitable organization; nonprofits are generally exempt from tax).

Only contributing to charitable organizations every other year may make sense if your amount of annual contributions are below the standard deduction. This stacking strategy allows you to maximize the tax savings, and, when coupled with a charitable gift fund, you can smooth your charitable distributions over the full 24 months so that charities do not do without.

Another strategy to maximize charitable contributions are qualified charitable distributions. This involves sending required minimum distributions directly to charity, which maximizes tax benefits for you and helps your preferred charity. Check out the clip from the show below where Brian explains QCDs.

4. Economic outpatient care

Even though your adult children have almost certainly left the nest by the time you retire, they could still be financially dependent on you. 22% of all adults receive financial support from their parents, and younger adults receive support at an even higher rate. Setting clear boundaries with your children while they are still under your roof can help them become financially independent adults when they move out. Make sure they know what to expect, as far as financial support, so they know what they will be responsible for and not to ask for more. It probably wouldn’t hurt to introduce them to The Money Guy Show early in life, either.

Financial support between parents and children isn’t a one-way street, and you don’t want to end up on the other side of the equation. 21% of Americans currently provide financial support to their parents. As detrimental as providing excessive financial support to your adult children can be, draining them of resources while their dollars are still extremely powerful if saved for retirement can be just as harmful.

Expenses in retirement can vary wildly depending on your goals and financial situation. Some expenses, like a mortgage payment, may go away entirely in retirement. Others, such as those above, may increase in retirement. Once your retirement portfolio reaches a critical mass, it may make sense to connect with a fee-only financial advisor and start planning how those expenses will be allocated to accomplish your retirement goals, paying for your kids’ education, estate and legacy planning, tax planning, and more.

The Secrets to All-Inclusive Travel

One of the primary things you dream about as you work towards financial independence is the day you get to travel and enjoy the fruit of your hard work. Most of those fantasies include a tropical beach, a cold adult beverage, and the smell of sunscreen. Unfortunately, many of us become such proficient savers that we have a hard time letting go of the purse strings to actually start spending.

From those that are naturally thrifty all the way to those who are the exact opposite, there is a fantastic solution to help build memories through travel: all-inclusive travel resorts. These resorts were pioneered in the 1950s and have become a go-to solution for honeymooners, beach lovers, and retired travelers. The concept is simple and genius: you prepay all of your travel expenses including hotel, food, beverages, and entertainment when the trip is booked. This allows you the immediate benefit of budgeting your trip months in advance, and, once the trip begins, you can create a game plan to maximize the benefits of having an all-you-care-to-enjoy vacation. As cost conscious travelers, we have some experience and want to share some of the planning tips and tricks to help you understand and maximize the all-inclusive travel experience.

Know Where to Do Your Research

• TripAdvisor is a dominant resource because it allows fellow travelers to post their reviews and pictures so you can get an understanding of what your experience will be like along with planning tips and pitfalls to avoid.
  • Maximize the power of the searchable customer reviews. It is powerful that you can search TripAdvisor’s customer reviews for specific details. Curious about the dress code at the resorts restaurants? It is easy to find the answer and experience of others by using the search function.
  • Be weary of the bright-eyed, bushy-tailed honeymoon reviews. Generally speaking, it does not take too much to impress new, young lovebirds who can barely take their eyes off one another. Considering that “honeymoon bias”, those reviewers may not be the best resource for determining how good a resort’s rooms, food, entertainment, or service is. Look for reviews from travelers that may have a bit of experience.
• YouTube is your visual aid friend. Trying to decide between two different resorts or room types within a specific resort? YouTube can provide the visual information you need to make that well-informed decision.
• com is known for exposing the difference between reality and fantasy. The site offers picture comparisons between resort website pictures and actual photos taken by the site’s staff. They also offer a pretty good resort analysis and critique.

Become a Booking Bandit

 Leverage the ability to price shop and compare on the Internet and booking websites. Don’t forget that most airlines also offer their own travel agent services. Southwest Airlines, for example, does not allow their airfares to be purchased through any of the traditional aggregation sites, so if your city has a Southwest hub, be prepared to book directly through Southwest and their travel sibling Southwest Vacations.

• Once a provider is chosen try to layer discounts.
  • com – many travel providers offer 1-3% cash back if booked through the eBates portal. Who doesn’t love a rebate of $40-$200?!
  • eBates and Retailmenot will also have coupon codes that you can potentially apply to your vacation.
• See if your special occasions qualify you for free stuff! It is not uncommon for resorts to offer exclusive dining experiences (candle-lit dinner on the beach or 2 for 1 spa packages, for example) to honeymooners and couples that have celebrated, or will celebrate, an anniversary in the last or coming 30 days (to ensure you receive your upgrade, bring a copy of your marriage certificate). Birthdays can also be celebrated with some special recognition by the resort.

Know What is Included and What is Excluded

 Benefits of all-inclusive travel are lost if you plan poorly and become a victim of upgrade surcharge shock. Areas to pay attention to are:

• • Airport transfers – you will need to arrange your transportation to and from the airport to your resort. A few upscale VIP resorts will include this in their price (they offer their own luxury transportation). However, most will require you to purchase this in addition to your all-inclusive package. The transportation companies will often use this opportunity to sell additional excursions and entertainment while you are traveling. This may be convenient, but remember that haggling and price negotiation are reasonable and expected.
  • Understand what food and beverages are included. Just like airlines have learned there is additional profit in charging for checked bags, snacks, and wifi access, all-inclusive resorts have learned there is money to be made by offering additional premium upgrades. There is nothing wrong with this except for sometimes you may not realize you are being offered something that is an additional charge. Pay attention specifically to:
    • Upgraded wine choices at dinner. They will offer you a wine list with upgraded prices provided, but what they don’t usually put forward is that there are similar house brands that are included in your base package.
    • Spa services are obviously an upgrade, but recently resorts have also started offering additional specialized lotions and creams that may be a premium on an already purchased upgrade.
  • Water sports- many resorts will provide complimentary access to snorkeling gear and kayaks, but do not assume it is included. Verify before you travel. Also know that motorized jet skis, jungle tours, ATV rides are extra and will need to be booked separately from the all-inclusive booking.

Be Wary of Time Share and Membership Pitches

Yes, it is great to get a $220 couples massage or surf and turf dinner on the beach for what they present as “free”. The catch is that you just need to participate in their sixty minute tour and explanation of their special membership or loyalty program. It is not uncommon for these experiences to last well over three hours and to turn into hardcore sales presentations. Recognize that your vacation time is very valuable, and it may make sense to pass on the perceived free stuff if there is a catch.

Traveling is a healthy spending goal, and one that we encourage our clients to make. The driving force behind that recommendation is that travel can be the gateway into creating lifetime memories for you and your loved ones. You also never know what life event or cultural exposure will spark that great idea or innovation for you or a loved one. So, regardless if you decide that all-inclusive travel is for you or not, try to create a bucket in your long-term goals for traveling and experiencing this awesome world we live in.

Tune In and Go Beyond Common Sense with the Money Guys

This show would not be what it is today without the support of our wonderful listeners. We strive to continue making the show better and your feedback is an important part of that process.  

If you have any questions/suggestions/comments/concerns (or just want to say hi!), feel free to reach out to us: brian [at] money-guy.com and bo [at] money-guy.com. You can also join the conversation on Facebook or connect on Twitter @MoneyGuyPodcast.

If you enjoyed this episode, be sure to join our community! You’ll get immediate access to 15 of our most recent shows, plus you’ll get future podcasts delivered straight to your inbox so you can get in on the action right away.

For frugal individuals who love to travel, it can be difficult to travel regularly, stay on budget and still have a great trip. Luckily, there are certain ways budget travelers can enjoy the sights and keep some money in their pockets — and one of the best is to travel between seasons.

If you’ve ever wondered how you could have a great trip and not spend a ton of money, read on!

Travel Between Seasons

Traveling between peak seasons doesn’t mean going to extremes. You don’t need to traipse through the Costa Rican jungle during the rainy season, when the rain makes some travel impassable. Instead, look to travel after the high tourist season ends and before tourism grinds to a complete halt in areas that interest you.

Also known as the “shoulder seasons,” these are times of the year when tourism is down but climate and entertainment are still enjoyable.

In the United States, shoulder seasons are typically the spring and fall. The weather is still nice (no snow!) and the crowds are not as numerous (since kids are in school). During these times of the year, hotels often lower their rates, and concerts and local festivals are more accessible with fewer people attending them.

Around the world, shoulder seasons typically follow the same spring/fall pattern as they do in the United States. However, it pays to do some research ahead of time on your destination of choice — for example some places in the Caribbean are hit hard by hurricanes and other weather disturbances in early fall. 

You may also miss out on some entertainment and events that only take place in high tourist seasons if you travel in the “shoulder” months. If this is important to you, you may need to find other ways to reduce cost of travel so you can still make it to sights and attractions you prioritize.

Be Flexible and Proactive

As with most travel plans, it helps to be flexible when you’re trying to save the most money. If you’re planning a March trip to France, for instance, be flexible when choosing flights. You may get a better deal flying out late on a Friday than you would early Monday, so check different times and different airlines to get the best deal.

You’ll likely be able to choose from a variety of lodging if you travel during the shoulder season, but it pays to call ahead and see what type of deals hotels can offer. Many hotels lower their rates during slower seasons, and it doesn’t hurt to call and see if they can throw in an upgrade for the same price!

Hotels aren’t your only option when traveling on a budget. Many locals, either on VRBO or Airbnb, lower their rates in the shoulder seasons as well. Some owners remember to change their prices online, but others don’t, so email ahead of time and see if they’re willing to lower their prices to get you in the door. Most owners would prefer to rent their space at a discount than have it sit empty, not making them any money.

Things to Consider When Traveling During the Shoulder Season

When planning your shoulder season vacation, take care to not stray too far from “high season” dates. While you want to avoid massive crowds and the higher prices they bring, getting too into the “low season” to save money can backfire as well.

Phoenix, Arizona in July and August is very cheap — even for luxury bookings — but there’s a reason for that: the weather is so hot, it inhibits almost all outdoor activity.

Also keep in mind that some places may not have much of a shoulder season. Popular destinations like southern California, for instance, rarely see much of an off-season simply because the weather is nice almost year round. For Americans, London can be expensive all year long, due to an unfavorable exchange rate and consistent traffic from both tourists and locals.

Finally, consider what you want to get from your trip. If you want to visit Spain for Semana Santa (or Holy Week), you won’t be going in November. During the winter, popular destinations like the Grand Canyon are closed because of hazardous winter conditions, and by the time the Grand Canyon is open again, it’s tourist season. In these cases, you may have to accept the tourists and higher prices in order to see exactly what you want.

Traveling during the shoulder season can offer many benefits, especially when it comes to saving money. However, there are many other benefits associated with traveling during off-peak times, including more interaction with locals, smaller crowds, and less traffic. If possible, try to travel during shoulder season as much as you can to enjoy a great trip and save a bundle of money!

If you enjoyed this post, you’ll love free access to more content from The Money Guys. Check out our free resources here!